StanChart, Tazapay Sign MoU to Offer Digital Escrow on Proxtera

Fazzaco learned that Standard Chartered has signed a memorandum of understanding (MoU) with Tazapay, a digital payments platform, to deliver digital escrow services to buyers and sellers looking to trade globally on Proxtera, a business-to-business marketplace network. 

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Proxtera was established in 2020 to carry out this programme with a vision to reduce friction in cross-border trade, especially for small and medium sized enterprises (SMEs).

Under the MoU, Standard Chartered will facilitate the opening of bank accounts required by Tazapay to receive and hold the escrow funds in both the buyers' market and the escrow location, and enable the flow of funds to the sellers once Tazapay validates the escrow conditions for the release of funds – for example, evidence of delivery or receipt of goods from the parties.

The pilot transaction for the MoU will take place between Singapore and India after obtaining appropriate regulatory clearances, with more corridors to be added in due course.

Fazzaco earlier reported that Standard Chartered has posted its financial results for the first quarter of 2021​, revealing a 18 percent jump of profit before taxation to $1.4 billion compared to Q1 of 2020.